NET OPERATING LOSS

SEC. 330. NET OPERATING LOSS (a) Loss for Taxable Year Beginning Before 1948.—So much of subparagraph (A) of section 122 (b) (2) (relating to the amount of carryovers) as precedes “the taxpayer” is hereby amended to read as follows: “(A) Loss for Taxable Year Beginning Before 1948.—Except as provided in subparagraph (D), if for any taxable year beginning before January 1, 1948,”. (b) Allowance of Three-Year Loss Carry-Over From Taxable Years 1948–1949.—Section 122 (b) (2) (relating to the amount of carry-over) is hereby amended by adding after subparagraph (B) the following new subparagraphs: “(C) Loss for Taxable Year Beginning After December 31, 1947, and Before January 1, 1950.—If for any taxable year beginning after December 31, 1947, and before January 1, 1950, the taxpayer has a net operating loss, such net operating loss shall be a net operating loss carryover for each of the three succeeding taxable years, except that the carryover in the case of each such succeeding taxable year (other than the first succeeding taxable year) shall be the excess, if any, of the amount of such net operating loss over the sum of the net income for each of the intervening years computed— “(i) with the exceptions, additions, and limitations provided in subsection (d) (1), (2), (4), and (6), and “(ii) by determining the net operating loss deduction for each intervening taxable year without regard to such net operating loss or to the net operating loss for any succeeding taxable year and without regard to any reduction specified in subsection (c). For the purpose of the preceding sentence, the net operating loss for any taxable year beginning after December 31, 1947, and before January 1, 1950, shall be reduced by the sum of the net income for each of the two preceding taxable years computed— “(iii) with the exceptions, additions, and limitations provided in subsection (d) (1), (2), (4), and (6), and “(iv) by determining the net operating loss deduction without regard to such net operating loss or to the net operating loss for the succeeding taxable year, and without regard to any reduction specified in subsection (c). “(D) Loss for Taxable Year Beginning After December 31, 1946, and Before January 1, 1948, in the Case of a corporation Which Commenced Business After December 31, 1945.—If for any taxable year beginning after December 31, 1946, and before January 1, 1948, a corporation which commenced business after December 31, 1945, has a net operating loss, such net operating loss shall be a net operating loss carryover for each of the three succeeding taxable years, except that the carryover in the case of each such succeeding taxable year (other than the first succeeding taxable year) 65 Stat. 506 shall be the excess, if any, of the amount of such net operating loss over the sum of the net income for each of the intervening years computed— “(i) with the exceptions, additions, and limitations provided in subsection (d) (1), (2), (4), and (6), and “(ii) by determining the net operating loss deduction for each intervening taxable year without regard to such net operating loss or to the net operating loss for any succeeding taxable year and without regard to any reduction specified in subsection (c). For the purpose of the preceding sentence, the net operating loss for any taxable year beginning after December 31, 1946, shall be reduced by the sum of the net income for each of the two preceding taxable years computed— “(iii) with the exceptions, additions, and limitations provided in subsection (d) (1), (2), (4), and (6), and “(iv) by determining the net operating loss deduction without regard to such net operating loss or to the net operating loss for the succeeding taxable year, and without regard to any reduction specified in subsection (c).” (c) Effective Date.—The amendments made by this section shall be applicable in computing the net operating loss deduction for taxable years beginning after December 31, 1948.